Beverage Packing Holdings reports reduced leverage ratio at Sept. 30

By Jennifer Lanning Drey

Portland, Ore., Nov. 23 - Beverage Packaging Holdings (Luxembourg) II SA has decreased its leverage ratio to 3.3 times EBITDA from 6.1 times EBITDA over the past 30 months due to its continued focus on cash flow management, cost reduction and reduced leverage, Rolf Stangl, chief executive officer of the company, said Monday during the company's third-quarter conference call.

The company's last-12-months adjusted pro forma EBITDA increased by 33% to €350 million at Sept. 30, compared with €264 million on the comparable date in the prior year.

The improvement was due to the successful continuation of its cost-savings program paired with favorable exchange-rate changes and lower raw material costs, Stangl said.

"We continued, and will continue, our strong focus on cost reduction and cash-flow improvement, and, as a result, we've managed to delever the business quite significantly over the past 30 months and plan on continuing to do so," he said.

Beverage Packaging's overall revenues increased by 5% in the third quarter to €321 million from €306 million in the same period of 2008.

On Nov. 5, Beverage Packaging closed on the acquisition of Reynolds Consumer Products and Closure Systems International.

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